1…2…Punch

January 29, 2014

The polar vortex punch

 

Keeps punching

 

 

This week we saw

 

Temperatures plunge….

 

Once again

 

 

It may have been nice….

 

The first time around

 

 

 

But by now…

 

 

People seem to be getting

 

A little groggy

 

 

It’s time to change the channel

 

 

 

As I stated last week

 

The energy market did react

 

To the plunging temperatures

 

 

Basis (transportation cost) went up 1000% in 1 day

 

 

Over the past year

 

 

Basis pricing

 

Has been at a 10 year low

 

 

The jump in pricing

 

Had many experts just shaking their heads

 

 

They were finding themselves in…

 

 

Unchartered waters

 

 

This was beyond whiplash

 

 

 

We do not see these prices sustaining

 

 

If you look at natural gas futures

 

A couple months out

 

Prices tend to be

 

More reasonable

 

 

 

You just do not want to

 

Be shopping your account

 

And include the present month energy pricing

 

In the mix

 

 

For it will skew the whole proposal

 

And you will end up paying a premium

 

 

 

They say…

 

Patience is a virtue

 

 

In this business

 

You need it